Wealth giant AMP has confirmed that it will adjust the remuneration package of its chief executive to better reflect the challenges currently facing the company.
AMP CEO Francesco De Ferrari, who was appointed in August 2018, had been in line to receive $16 million in buyout and recovery incentives based on AMP’s share price of $3.44 at the date of the announcement.
AMP’s share price and performance significantly declined, however, since De Ferrari’s appointment, mainly due to the adverse consequences flowing from the royal commission.
De Ferrari's potential bonuses would be reduced by as much as $4.6 million, after AMP adjusted the CEO’s targets and incentives to reflect a share price decline to $2.45 just before he started in January, dropping the value of the buyout and recovery incentives to $11.4 million.
AMP also announced that De Ferrari will receive a 2019 LTI Transformation Award with a face value of $3.5 million, based on a comparison of the compound annual growth rate in AMP’s total shareholder return (TSR) relative to a financial services comparator group of companies.
